Gen DigitalMEX:GEN 67 Gross Margin % is 78.49% as of Mar. 2026, which is 4% below its 10-year median of 81.69. GuruFocus rates MEX:GEN with a GF Score™ of 67/100 and a GF Value™ of MXN612.51 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Gen Digital ranks better than 87.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Gen Digital's Gross Profit for the
three
months ended in Mar. 2026 was MXN18,159 Mil. Gen Digital's Revenue for the
three
months ended in Mar. 2026 was MXN23,136 Mil. Therefore, Gen Digital's Gross Margin % for the quarter that ended in Mar. 2026 was 78.49%.
Warning Sign:
Gen Digital Inc gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
The historical rank and industry rank for Gen Digital's Gross Margin % or its related term are showing as below:
MEX:GEN'
s Gross Margin % Range Over the Past 10 Years
Min: 78.46 Med: 81.69 Max: 85.81
Current: 78.46
During the past 13 years, the highestGross Margin % of Gen Digital was 85.81%. The lowest was 78.46%. And the median was 81.69%.
MEX:GEN's Gross Margin % is ranked better than 87.45% of 2685
companies
in the Software industry
Industry Median: 40.45
vs MEX:GEN: 78.46
Gen Digital had a gross margin of 78.49% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Gen Digital was -1.80% per year.
Gen Digital (MEX:GEN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Gen Digital had a gross margin of 78.49% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Gen Digital Gross Margin % Related Terms
Gen Digital Gross Margin % Historical Data
* Premium members only.
The historical data trend for Gen Digital's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:GEN vs TOST, RBRK, DOCN: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Gen Digital's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gen Digital Gross Margin % vs Software Industry
For the Software industry and Technology sector, Gen Digital's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gen Digital's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Gen Digital (MEX:GEN) has a Gross Margin % of 78.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gen Digital and its competitors. This is near median its historical median of 81.69. Over the past decade, Gen Digital's Gross Margin % has ranged from 78.46 to 85.81. According to the industry distribution chart, Gen Digital ranks #337 out of 2685 companies in the Software industry, placing it in the top 12.6%.
Is Gen Digital's Gross Margin % too high?
Gen Digital's current Gross Margin % of 78.49% is near median its 10-year median of 81.69. Over the past 10 years, this metric has ranged from a low of 78.46 to a high of 85.81. The Software industry median Gross Margin % is 40.45. Gen Digital's value of 78.49% is 94% above this industry median. Based on the distribution chart, Gen Digital ranks #337 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Gen Digital has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gen Digital's Gross Margin % compare to TOST and RBRK?
According to the Software industry distribution chart, Gen Digital ranks #337 out of 2685 companies for Gross Margin %. This places Gen Digital in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Gen Digital's value of 78.49% is 94% above this benchmark. Historically, Gen Digital's own Gross Margin % has ranged from 78.46 to 85.81 over the past decade. While the company's 10-year median is 81.69 vs. the industry median of 40.45, Gen Digital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gen Digital's current Gross Margin % of 78.49% is 94% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Gen Digital and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gen Digital's current Gross Margin % is 78.49%, which is near median its own 10-year median of 81.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gen Digital stock overvalued right now?
Based on GuruFocus' analysis, Gen Digital (MEX:GEN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN612.51, compared to a current price of MXN440.00 — trading 28.2% below its estimated fair value. The current Gross Margin % is 78.49%, which is near median its 10-year median of 81.69 and 94% above the Software industry median of 40.45. Gen Digital's overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Gen Digital (MEX:GEN), the current Gross Margin % is 78.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gen Digital (MEX:GEN) Overvalued in 2026?
Based on GuruFocus' analysis, Gen Digital stock appears to be undervalued.
The current stock price of MXN440.00 is trading 28.2% below its estimated GF Value™ of MXN612.51.
GuruFocus considers Gen Digital to be Modestly Undervalued.
Key valuation signals for MEX:GEN:
Gross Margin %: 78.49% (near median its 10-year median of 81.69)
GF Value™: MXN612.51 vs. price of MXN440.00 (28.2% below fair value)
Industry Position: 94% above the Software median (#337 of 2685)
No single metric tells the full story. See the MEX:GEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gen is a cybersecurity pure-play that offers security, identity protection, and privacy solutions to individual consumers. The firm's cyber safety offerings, via brands such as Norton, Avast, and LifeLock, have long maintained their positions as some of the most recognizable consumer-focused security and identity-protection products.
67GF Score
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